Basra oil output drops by 2 million bpd amid regional conflict

ERBIL, Kurdistan Region - Oil production in Iraq’s southern Basra fields has dropped by around 2 million barrels per day since the escalation of conflict between Iran and the US-Israel coalition, officials from the Basra Oil Company said.

“The production level according to federal Oil Ministry guidelines is 1.3 million barrels. This is while before the military developments in the Gulf, it was 3.3 million barrels per day,” Kazem Karim, deputy director of the company for field and license affairs, told Iraqi state media.

This comes come amid escalating regional tensions following US and Israeli strikes last week that killed several senior Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei. In retaliation, Iran has targeted several countries in the Gulf as well as Iraq and the Kurdistan Region, saying it is striking US-linked positions in neighboring territories. The attacks have also caused damage to civilian and economic infrastructure and other non-military sites.

Karim said oil export facilities in the province remain operational.

Oil ports in Basra, including Umm Qasr and Basra Oil Port, “are operating normally,” he said, adding that exports depend “on the availability of ships.” He noted that the company has the capacity to load oil tankers with the available supply.

The Islamic Revolutionary Guard Corps (IRGC) said Monday that the Strait of Hormuz has been closed, and any ship that attempts to enter would be targeted. The closure could slash Iraq’s monthly revenue from $7 billion to $1 billion, Mazhar Mohammed Salih, an economic advisor to Prime Minister Mohammed Shia' al-Sudani said on Tuesday, as tensions escalate in the strategic waterway.

He also said the departure of foreign personnel from some oil facilities has not halted operations.

The return of expert staff from foreign companies to temporary headquarters in Gulf countries “has not caused a halt to their work in the Zubair, Rumaila, and other fields,” Karim said, explaining that they remain in online contact with domestic and international teams to ensure production continues.

However, security concerns have affected some facilities. Foreign staff were evacuated from Iraq’s giant Rumaila oilfield, operated by British energy giant BP, after drone attacks on Thursday.